Saving for the Savvy Yuppie – What You Need to Know

The struggle of saving has long been issue. Even in medieval times, people found a way to bury themselves in debt, and some even paid with their heads for it – literally. Now that we live in a modern world, the old problem has taken a new shape, dressed in designer clothes and sipping an expensive cup of non fat coffee.

The world has made it so much easier for people to spend. See, before you only have to worry about going into malls or boutiques, but thanks to the internet, the shopping is coming to you. You could spend a month’s worth of pay in one sitting, probably bidding on Luke’s lightsaber or the latest Dior purse.

Because the way people spend changed, it’s only smart to also update how you save, else you’ll also end up losing your head, figuratively. You’ll either be drowning in debt, unable to afford anything, or you won’t have enough put away for retirement, when you don’t the strength to work as hard. To help you out, here are some simple and savvy tips you can try to help you save for the inevitable rainy day.

1. List your long-term priorities.

Surely, you have things you know you will spend on in the future, like retirement, traveling abroad or purchasing your own home. List them down, and figure out how much you have to spend for them.

For example, if you want to retire by 40, how much should you put away now, so you’re able to maintain your lifestyle even if you don’t work? That amount is what you have to save for, then add to that other future expenses that your other goals require. When you look at it in this perspective, you won’t feel like you’re depriving yourself; rather, you’re just preparing so you have room to achieve and enjoy your other goals.

2. Keep track of your expenses.

Nothing sobers up a spending spree faster than a quick slap of reality. If you know how much you’re spending, especially on things that don’t matter, you will initiate cutting those expenses off or strategize a way to lower the cost. That’s why you have to make sure that you list every single purchase you make and bill you pay, from small snacks to subscriptions and utilities.

3. Stay away from sites or apps that encourage you to spend.

The reward of this generation is also its downfall because as technology makes it easier to buy things, it also makes it easier to overspend. If you know that you’re naturally impulsive and you can’t browse a site without wanting to buy everything, stay away from it. Instead, reasonably schedule when you can shop and buy things you want.

Conversely, arm yourself with apps that help you budget better like a finance tracker or one which spots discount codes. You can also research high yield savings accounts and other investments to put your money in, instead of spending it.

Try to incorporate these 3 simple tips into your daily life. Adjust where you think you need more control and indulge when you think you should reward yourself. The key here is moderation, and giving yourself reminders of what is important.

Do you really need another pair of shoes or a new phone or would you rather put it into something more productive, like investments or a retirement fund? That’s a universal question that plagues everyone. You can even ask your friends and family if they’re going through the same issues, and maybe you can help each other save with these tips.

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